The postelection rally has hit some turbulence in recent days, giving investors a bumpy ride in the near term. However, these choppy markets can harbor plenty of opportunities — for those who know where to look.
Investors shouldn’t focus too much on short-term volatility as they position their portfolios. Recommendations from Wall Street can help them make informed decisions on stocks and seek solid long-term returns.
Top-rated analysts pay attention to multiple aspects when selecting stocks of companies with solid fundamentals and strong execution.
Bearing that in mind, here are three stocks favored by the Street’s top pros, according to TipRanks, a platform that ranks analysts based on their past performance.
Amazon
We start this week with e-commerce and cloud computing giant Amazon (AMZN). The company impressed investors with third-quarter beats on the top and bottom lines, fueled by strength in its cloud and advertising businesses.
In reaction to the solid Q3 print, Monness analyst Brian White reaffirmed a buy rating on Amazon stock and boosted the price target to $245 from $225. While the analyst acknowledged regulatory pressures, he remains bullish on AMZN as he thinks it will continue to “capitalize on the cloud, expand its digital ad business, innovate with AI, realize efficiencies from a regional fulfillment network, and leverage a leaner cost structure.”
White highlighted that Amazon’s revenue growth accelerated to 17%, with significant profit upside. Notably, Q3 operating profit exceeded his estimates, driving record operating margin at 11%. He also noted the sharp sequential rise in operating margins at Amazon Web Services, or AWS, and International business. Based on the solid results, the analyst raised his revenue and earnings per share estimates for 2024 and 2025.
White also pointed out Amazon’s focus on reducing costs via improved efficiencies and new initiatives such as regionalizing its U.S. fulfillment network. The company now aims to regionalize its U.S. inbound network and leverage advanced robotic innovations across its fulfillment network.
Overall, White sees lucrative growth potential for Amazon across e-commerce, AWS, digital media, advertising, Alexa, robotics, artificial intelligence and other avenues.
White ranks No. 38 among more than 9,100 analysts tracked by TipRanks. His ratings have been profitable 69% of the time, delivering an average return of 20.4%. See Amazon Stock Charts on TipRanks.
Uber Technologies
We now move to this week’s second pick, ride-sharing platform Uber Technologies (UBER). The company recently delivered better-than-expected third-quarter revenue and earnings. However, it missed Wall Street’s expectations for Q3 gross bookings.
Nonetheless, Evercore analyst Mark Mahaney remains bullish on UBER stock. He reiterated a buy rating with a price target of $120, following a series of investor meetings with management.
Mahaney thinks UBER will gain from autonomous vehicle rollouts, given its position as the…
Read More: Top Wall Street analysts are upbeat on these stocks for the long haul
